If the app fails, the business model fails. Simple, no? Their revenue stream is their app. From these “partners” they take commission per stay (10-14%). And probably have to sign some sort of agreements to ensure the consistency of quality – which is important because you’re actually going to live in someone’s house. Just like on Amazon, Flipkart and OYO for that matter. When you register on their platform as the provider, you become their “partner”. The company is an aggregator, now what does that mean? It means it is a platform and not a hotel, at least not at the moment, they’re an asset-light company.
The talk of funding may seem exciting – if the company has raised billions of dollars – it must have an exciting business model, too? For one, it does. Related: Take a look at how a startup is valued The Airbnb Business model Even their logo is called “Belo” and represents “the universal symbol of belonging”. Their very simple idea was and still is “Home away from Home”.
Fast forward to 2020, the company has raised billions and still raising more. Over the next 7 years, this attention attracted a few of the most popular investors like Y Combinator, Ashton Kutcher, Andreessen Horowitz, Sequoia Capital, Keith Rabois, Founders Fund, and TPG Growth in a total of seven funding rounds-the last of which raised $500M alone – totalling to $776M.
